The Impact of Tariffs and Uncertainty on the K&B Sector
There are many potential impacts regarding the new tariffs and how they can affect U.S. trading. This uncertainty is affecting the K&B industry, it is expecting a return to gradual growth after two years of decline. The NKBA Kitchen & Bath Market Outlook Report forecasts that spending on residential kitchens and baths in the U.S. will increase by 0.8%, reaching $235 billion in 2025—an additional $2 billion compared to last year.
The NKBA calculated two major uncertainties that could affect the 2025 forecast. The first is the “missing middle” of homeowners eager to start mid-range renovations but held back by high borrowing rates, which is crucial for a full recovery in kitchen and bath remodels. The second is the potential impact of tariffs and immigration policy changes on the cost of materials and labor, which could affect consumer behavior. Early data from the 1Q25 NKBA Kitchen & Bath Market Index suggests trade issues are already dampening the industry’s outlook for 2025.
